How do I configure the Savings Deduction component?

This feature is available on all Deel Local Payroll powered by payspace payroll editions

A Savings Deduction component is a predefined deduction component that automatically sets aside a portion of an employee’s salary for savings purposes. This amount is typically deducted from the employee’s gross or net pay and directed to a designated savings account, investment fund, or other financial instrument.

The Savings Deduction component has to be configured on company level before it can be linked to an employee's Recurring Payroll Components screen. 

Step 1: Configure the Savings Deduction component on company level.

      Navigate > Config > Payroll Config > Payroll Components

       

        

       

Step 2: Add the component to an employee's Recurring Payroll Components screen. Specify the Initial Savings balance and the Installment amounts in the respective mandatory fields.

      Navigate > Employee > Payroll Processing > Recurring Payroll Components > Deductions

      

The installment amount will display on the Edit Payslip screen.

      Navigate > Employee > Payroll Processing > Edit Payslip > Deductions 

      

Important

1. If an employee agrees to save an amount for a specific period, a start and end date can be specified when adding/editing the component.
   
2. At present, the system does not have a function or component to automatically payout the employee's Savings to them. A manual non-taxable Allowance component can be configured to do so.
   

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